Alibaba Group's (NYSE: BABA) C2C e-commerce site Taobao recently launched a new low-end shopping app called "Taobao Tejiaban" (Taobao Bargain Edition), which is now available through major app stores. The app offers mainly small, low-cost items and bargain sales and focuses on product shopping services supported by the Taobao platform. A source close to the matter said that Taobao Bargain Edition is intended to compete with mobile group buy e-commerce platform Pinduoduo, operated by Xunmeng Information Technology, which is growing rapidly and mainly offers special low-price deals.
The Taobao Bargain Edition app covers 16 product categories including clothing, daily consumables, general merchandise, home electronics, and home furnishings. Its home screen features limited-time offers and special bargain items. Most items are priced between RMB 6 and RMB 30.
Taobao Bargain Edition is officially positioned as a shopping app that also lets consumers earn prizes under a sharing mechanism. Users can quickly register under a fast registration system and can win additional rewards by inviting new users to the platform.